Global Investors Most Bullish Since February Amid Record Low Cash Allocations

Global institutional investors are showing their most optimistic sentiment in five months according to Bank of America's July 2026 Global Fund Manager Survey. The survey, conducted between July 2 and July 9, found that cash allocations plunged to 3.6%, the lowest level since records began.

This is a stark contrast to previous surveys, which showed persistent under-ownership of cryptocurrencies among institutional fund managers. However, with broad risk-on sentiment revealed in this survey, conditions for catch-up flows into digital assets start to look plausible.

The contrarian sell signal activated by BofA suggests that the easy money in equities may have already been made this cycle. This could potentially drag down everything, including crypto markets, if a broader risk-off move occurs.